Divorcing later in life, sometimes known as “gray divorce”, can shake the foundation of your retirement plans, especially when it comes to healthcare and long-term care. This article breaks down what changes in these types of divorces, what is the same in every divorce, and what you need to watch for when navigating Medicare, private insurance, and care costs post-divorce.
Key Takeaways:
- You may still qualify for Medicare and Social Security benefits based on your ex-spouse’s record.
- Employer health insurance usually ends after divorce, but options like COBRA and Marketplace plans are available.
- Long-term care plans and Medicaid eligibility often require updates after divorce.
Later-life divorce comes with a different set of challenges than separating at a younger age. For those in their 60s and beyond, it’s not just about dividing assets or deciding who keeps the house. It’s about untangling a life built over decades, with the expectation of shared retirement benefits, health insurance, and long-term care plans. Now, with a major life shift on the table, many are left asking: what happens to everything we planned for?
If you’re facing divorce around retirement age, you’re not alone. “Gray divorce” — divorce among adults aged 50 and up — has been on the rise in recent years. While emotionally taxing, this transition also comes with serious financial and healthcare implications. But with the right guidance and planning, you can protect your future.
Let’s break down how divorce at 60 can affect Medicare, health insurance, long-term care plans, and retirement benefits — and what you can do about it.
Medicare After Divorce: What You Need to Know
Divorce doesn’t kick you off Medicare, but it can affect how you qualify and what you pay.
Can I still get Medicare through my ex? Yes. If you were married for at least 10 years and are 65 or older, you can still qualify based on your ex-spouse’s work history. No, you don’t need their permission. And no, it doesn’t affect their benefits.
Will I still get Part A for free? Probably. If either of you worked and paid Medicare taxes for at least 10 years, you won’t pay premiums for Part A (hospital insurance).
What if I delayed signing up because I had coverage through them? You’ll need to act fast. If the divorce ends your health coverage, you qualify for a Special Enrollment Period to sign up for Medicare without penalties.
What Happens to Health Insurance?
Divorce can seriously disrupt your health insurance, especially if you’re not yet on Medicare and have been covered under your spouse’s employer-sponsored plan. That coverage typically ends once the divorce is finalized, leaving you searching for new options.
COBRA is one way to keep your existing coverage for up to 36 months. It offers continuity of care but comes at a high cost since you’re paying the full premium out-of-pocket. For a more budget-friendly path, you can explore Health Insurance Marketplace plans. Divorce qualifies you for a Special Enrollment Period, so you don’t have to wait until the next open enrollment. Depending on your post-divorce income, you may also be eligible for subsidies, making this route more affordable than COBRA.
If you’re already enrolled in Medicare, your coverage continues without interruption. However, it’s a good time to reassess your supplemental insurance. Medigap and Medicare Advantage plans can fill coverage gaps, but your premiums may adjust based on your new income and household status. Reviewing your plan ensures it still aligns with your needs.
Long-Term Care: Don’t Let It Fall Through the Cracks
This is a big one, and often overlooked in the divorce process.
Already have a joint long-term care policy? Check your fine print. Some insurers let you split it into two policies. Others may cancel or ask for new underwriting. Don’t assume—you need to call them.
Could you now qualify for Medicaid? Possibly. After divorce, your ex’s income and assets no longer count, which might make you eligible. That’s worth reviewing with a financial advisor or attorney.
Have you updated your legal documents? Your ex might still be listed as your healthcare proxy or power of attorney. That’s not ideal. Revisit your estate planning docs to make sure they reflect your new life.
Don’t Ignore the Ripple Effect on Retirement and Social Security
Health insurance and long-term care are big, but don’t forget what the divorce means for your income.
Social Security: Can you still get benefits based on your ex? Yes—if the marriage lasted 10+ years, you’re 62 or older, and you haven’t remarried. Their benefit isn’t reduced. You just get a portion based on their earnings.
Splitting retirement accounts: 401(k)s, pensions, and IRAs earned during the marriage are typically split 50/50 in Texas. A legal tool called a QDRO (Qualified Domestic Relations Order) is often used to divide these accounts without triggering taxes or penalties.
Your new budget: You may have to rethink your retirement timeline or monthly spending. Health costs could take up a larger chunk of your income than before. This is where a financial planner can help you get a handle on the new picture.
Staying Ahead: Tips for Managing the Transition
This is a big life change. But it doesn’t have to mean starting over with nothing. Here’s how to stay in control:
- Gather your documents. Start by organizing everything—Medicare info, insurance policies, retirement account statements, and long-term care plans. Having a clear picture of your assets and benefits will help you make informed decisions.
- Talk to a financial advisor. A financial professional can help you reevaluate your post-divorce retirement goals and adjust your healthcare and long-term care plans based on your new financial situation.
- Update your legal paperwork. Don’t forget to change powers of attorney, healthcare proxies, and wills. You may no longer want your ex making important medical or financial decisions on your behalf.
- Take advantage of special enrollment windows. Divorce qualifies you for Special Enrollment Periods for Medicare or Marketplace plans. These windows are time-sensitive, so mark your calendar and act quickly. Medicare and Marketplace plans have short deadlines post-divorce—don’t miss them.
- Get legal support. A family law attorney experienced in late-life divorce can help protect your rights, divide assets fairly, and make sure nothing important slips through the cracks. You don’t have to do this alone. An experienced family law team can protect your rights and your financial future.
Moving Forward with Confidence
Divorcing at 60 is not the future most couples plan for, but it’s far from the end of the road. With smart decisions and the right support, you can create a secure, healthy, and independent future.
At Bolton Law, we understand the emotional and financial complexities of late-life divorce. Our team is here to help you protect your health, your retirement, and your peace of mind. If you’re considering divorce or are already in the process, contact us today to schedule a free consultation. Your next chapter matters. Let’s make sure it’s built on a solid foundation.
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